If you have noticed in recent weeks, we have held a short bias for EUR/GBP , selling it during retrace higher. We have opened quite a few sell signals in this pair, most of which have closed in profit, apart from the earlier this week, when the price pierced above the 100 SMA (green) on the H4 chart for a while.

Although, that signal would have closed in profit, had we placed a larger stop loss, because the price reversed back down, making new lows. Moving averages have been doing a great job as resistance, particularly the 50 SMA (yellow) and the 100 SMA (green).

Today we saw another retrace higher, which took the price around 50 pips higher, but buyers are finding resistance at the 50 SMA once again on this chart. So, we decided to take another shot at this pair, opening a sell signal at the 50 SMA, now waiting for the reversal down and the bearish trend to resume.